20 units @ $450,000 so $9mil GR, extra funding cost is $170,000, or $8,500/unit, so let’s say you had pre-sales budgeted at 3% upfront and 3% on completion, by starting without pre-sales you would save the upfront marketing commissions on 10 units, which at 3% is $13,500 per unit, so a $135,000 project saving.

Or looking at construction, say it was $200,000 per unit cost to build, even at 4% cost increases per annum that is $4,000 per unit cost increase for the 6 month delay to secure pre-sales, or $80,000 to the project.

Case Study

10 Apartments

75%LVR / 92%LCR

Developer only required to contribute

$270,000 or 8% LCR leaving $425,000 available for investment.

Preferred Equity & Joint Venture

Preferred Equity & Joint Venture

Providing Mezzanine Debt from $2million up to $20million per project

5.0% establishment fee, can be reduced for larger loans, this is paid as:

$10,000 on application, which covers the credit committee preparation and review;

$15,000 upon acceptance of the formal finance offer, which covers loan documentation costs;

Balance paid from the loan settlement.

In most cases the mortgage security will be limited to the subject property, this means we don’t tie up all of your assets

In most cases we won’t require additional pre-sales above what the senior lender has dictated they require

Streamlined credit process, most loans we have issued a term sheet within 1-3 days, then once we have the credit submission complete our credit committee typically takes 1-3 days

Funds are available, quick settlement can occur, if all required documents can be provided

Mezzanine Debt

Mezzanine Debt

Are you looking to conserve your cash contribution towards your next development project?

Have a look at your project feasibility, with you putting in all the cash required to satisfy the bank, your cash IRR is typically about 50-80%pa, when you dilute your cash contribution by using a capital partner like QSI who only take 20-30%pa, which typically boosts your IRR to 120-150%pa. talk to us today about being smarter with your project cash.

Providing Mezzanine Debt from $2million up to $20million per project

Maximum Loan to Cost Ratio of 90%

Cost of funds can vary from 20%-30%pa dependent on how good the project, sponsor and how far progressed the project is;

5.0% establishment fee, can be reduced for larger loans, this is paid as:

$10,000 on application, which covers the credit committee preparation and review;

$15,000 upon acceptance of the formal finance offer, which covers loan documentation costs;

Balance paid from the loan settlement

In most cases the mortgage security will be limited to the subject property, this means we don’t tie up all of your assets

Second mortgage property security will be required, however we can also look at scenarios where this may not be available, but will have to price for the risk associated;

In most cases we won’t require additional pre-sales above what the senior lender has dictated they require

Streamlined credit process, most loans we have issued a term sheet within 1-3 days, then once we have the credit submission complete our credit committee typically takes 1-3 days;

Funds are available, quick settlement can occur, if all required documents can be provided.

Development Site Finance

Development Finance

Are you about to purchase a development site? or do you have a development site and want more funds to cover marketing and BA costs?

We can provide quick and simple loans against your development site.

Providing loans on development sites from $2mil to $15mil

Max LVR of 80%;

Cost of funds can vary from 12%pa up to 15%pa dependent on risk and sponsor strength;

Loan establishment fee of 3%, payable as

$10,000 upon application to cover credit committee preparation and review,

In most cases the mortgage security will be limited to the subject property, and personal guarantee, this means we don’t tie up all of your assets (banks can often cross collateralize your portfolio to satisfy interest servicing)

More flexible on choices ofValuation firm;

Streamlined credit process, most loans we have issued an approval in 1-2 days

Credit process is focused on the property / project, rather than a full interrogation of the sponsor’s ability to repay or service the loan

Stretch Senior Debt

Stretch Senior Debt

First mortgage construction finance at “stretched” Ratio’s:

More flexible senior debt terms & conditions;

Up to $100mil debt pieces;

Cost of funds of 3.5% over BBSY and 3% line fee;

Largely Superannuation fund sourced;

Attractions include:

Up to 90% LCR for senior debt (combines senior and junior debt pieces into one facility);

Reduced or no presale requirements;

Willing to accept a developer who is stepping up in project size;

No different treatment for Owner Builders (major banks typically reduce gearing with owner/builders).